FXStreet (Bali) - Alberto Muñoz, Ph.D., Forex Analyst at FXStreet, notes that GBPUSD will probably remain trading inside the 1.7080 - 1.7180 range post BoE rate call.



Key Quotes



"Once again I would not expect any change neither in interest rates nor forward guidance in July meeting. At the current moment the Bank of England is sending contradictory messages on interest rates to the market, creating some uncertainty as everybody expect a rate hike during 2015 but nobody knows exactly when, especially as inflation surprised last month falling to 1.5%, thus remaining below the Bank of England’s target for six months in a row. Add to this that a stronger pound is acting as an unofficial interest rate rise which could hit UK's growth and that there's a slowdown in mortgage approvals, despite the rise in housing prices, making more difficult to forecast where interest rates will be in a year. After the news, don't expect too much volatility in GBPUSD, which will probably remain trading inside the 1.7080 - 1.7180 range."



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Heavy Event Risk in Jobs Data, Rate Decision Will Confront Summer Trading

  2. Forex News

    US Dollar as ‘Data Dependent’ as the Fed as NFPs Approach

  3. Forex News

    Monetary Policy Speculation Continues Next Week With NFPs, RBA and BoE

  4. Forex News

    GBP Opening Monthly Range Hinges on BoE Vote Count, Inflation Report

  5. Forex News

    BoE inflation report - TDS

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!